IANS | 04 Jul, 2022
Small-cap indices have corrected sharply from the highs of October 2021.
While
the Nifty-50 declined 15 per cent from its October 2021 peak against a
20 per cent decline in midcaps and 28 per cent decline in smallcaps, the
broader market has witnessed a much sharper sell-off.
NSE Smallcap 100 index is down even vs December 2017 levels as per a report by Motilal Oswal Financial Services.
India
has outperformed key global markets in June'22 amid various challenges.
Autos gained while Metals and Private Banks were top losers and 85 per
cent of BSE 200 constituents declined in June'22.
Average daily
cash volumes dropped 45 per cent from the Oct'21 peak. Mid-cap volumes
are down 2/3rd vs Oct'21 peak while Smallcap volumes have halved vs
Oct'21, the report said.
The corporate profit-to-GDP ratio rebounded to a 10-year high of 4.3 per cent in 2022. The ratio improved for 18 of 25 sectors.
The US CPI surpassed India CPI for the first time in a decade in Sep'21 and has remained so since then.
FIIs
recorded outflows for the ninth consecutive month and stood at $6.3 b
in Jun'22 - the highest since March'20. Domestic inflows remained robust
at $6 b in Jun'22 and the year to date 2022 inflows stood at $26.7 b.
Forex
reserves are at the lowest since May'21 and the Indian rupee at an
all-time low v/s US dollar. Forex reserves declined to $591b, a decline
of $51b from its peak of Oct'21. Reserves are at their lowest level
since May'21.
